Reits Singapore: Understanding the Market and Opportunities

Singapore's REIT market has been growing steadily, with a total of 39 REITs listed on the Singapore Exchange (SGX) as of 2022.

The first REIT in Singapore, CapitaMall Trust, was listed in 2002.

REITs in Singapore are required to distribute at least 90% of their taxable income to unitholders, making them an attractive investment option for income seekers.

In 2020, the REIT market in Singapore saw a total of SGD 4.8 billion in transactions, a significant increase from SGD 2.6 billion in 2019.

For more insights, see: Singapore Equity Market

Singapore REITs are a popular investment option for many, and for good reason. They offer a relatively stable source of income through dividend payments.

One of the key characteristics of Singapore REITs is their focus on specific industries, such as healthcare, industrial, and retail. For example, Parkway Life REIT has a portfolio of 64 properties, including three hospitals in Singapore, 60 nursing homes in Japan, and a medical centre in Malaysia.

Some Singapore REITs have a strong track record of uninterrupted recurring DPU growth. For instance, Parkway Life REIT has reported uninterrupted recurring DPU growth since its IPO in 2007.

Here are some key statistics on the top 5 holdings of the Lion-Phillip S-REIT ETF:

Overall, Singapore REITs offer a unique blend of stability, income, and growth potential.

Singapore REITs have a long history, dating back to 2002 when the first REIT, CapitaMall Trust, was listed on the Singapore Exchange.

The REIT market in Singapore has grown significantly since then, with a total of 39 REITs listed on the exchange as of 2022.

Singapore REITs are known for their stability, with a low default rate of 0.4% from 2002 to 2022.

Many Singapore REITs have a high dividend yield, with some offering yields above 6%.

Singapore REITs have a diverse portfolio, with assets ranging from office buildings to shopping malls and industrial properties.

The Singapore government has implemented policies to support the growth of the REIT sector, such as the introduction of the Real Estate Investment Trusts Act in 2006.

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Parkway Life REIT has a portfolio of 64 properties, including three hospitals in Singapore, 60 nursing homes in Japan, and a medical centre in Malaysia, with a total appraised value of S$2.2 billion as of 30 September 2024.

The REIT has a remarkable track record of uninterrupted recurring DPU growth since its IPO in 2007, with its latest earnings release showing no exception.

PLife REIT reported a mixed performance for the first nine months of 2024, with revenue and NPI falling by 2.2% and 2.1% respectively, mainly due to a weaker Japanese Yen.

However, DPU managed to rise by 2.8% year on year to S$0.113, and the trailing 12-month DPU came in at S$0.1508, giving its units a trailing distribution yield of 4.2%.

The REIT has recently made a major acquisition of 11 nursing homes in France, opening it up to a new market and providing potential for further growth.

This acquisition is also DPU-accretive, with the first half of 2024's DPU projected to grow by 1.8% to S$0.0768.

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CapitaLand Integrated Commercial Trust (CICT) is a retail and commercial REIT with a portfolio of 21 properties in Singapore, two in Germany, and three in Australia.

It has a total assets under management of S$24.5 billion as of 31 December 2023.

CICT reported an upbeat set of earnings for 1H 2024 with gross revenue inching up 2.2% year on year to S$792 million.

NPI increased by 5.4% year on year to S$582.4 million while DPU edged up 2.5% year on year to S$0.0543.

Its trailing 12-month DPU stood at S$0.1088, giving its units a trailing distribution yield of 5.6%.

Portfolio occupancy stood at 96.4% with 9M 2024 gross revenue improving by 5.4% year on year to S$872.1 million.

Both the retail and office divisions saw positive rental reversions of 9.2% and 11.7%, respectively, for 9M 2024.

CICT's gearing stood at 39.4% as of 30 September 2024 along with an average cost of debt of 3.6%.

The REIT has also completed the acquisition of a 50% stake in ION Orchard Mall that is DPU-accretive.

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Singapore has a thriving REIT market, with various options to choose from. The Lion-Phillip S-REIT ETF has a Morningstar Singapore REIT Yield Focus Index as its underlying index.

The NikkoAM-Straits Trading Asia Ex-Japan REIT ETF has a lower expense ratio of 0.55% per annum, compared to the Lion-Phillip S-REIT ETF's 0.6%. The NikkoAM-Straits Trading Asia Ex-Japan REIT ETF also has a lower tracking error of 0.24% over the past three years.

The CSOP iEdge S-REIT Leaders Index ETF has a similar expense ratio of 0.6%, but a slightly higher tracking error of 0.28% over the past year. The CSOP iEdge S-REIT Leaders Index ETF also has a smaller fund size of SGD 71.6 million.

Here's a comparison of the four Singapore REIT ETFs:

The CSOP iEdge S-REIT Leaders Index ETF has a semi-annually dividend frequency, while the Lion-Phillip S-REIT ETF has a semi-annually dividend frequency as well. The NikkoAM-Straits Trading Asia Ex-Japan REIT ETF has a quarterly dividend frequency.

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If you're looking to invest in Singapore REITs, you have several options to consider. There are 4 REIT ETFs listed on the Mainboard of the Singapore Exchange.

You can choose from four REIT ETFs that offer different investment propositions, each with its own unique features. Each one offers a different investment proposition.

One of the key things to consider is the underlying index that the ETF tracks. For example, the Lion-Phillip S-REIT ETF tracks the Morningstar Singapore REIT Yield Focus Index, while the NikkoAM-Straits Trading Asia Ex-Japan REIT ETF tracks the FTSE EPRA Nareit Asia ex Japan REITs 10% Capped Index.

Here are the 4 REIT ETFs listed on the Mainboard of the Singapore Exchange:

You can buy these ETFs through various stockbrokers, including Phillip Securities, Maybank Kim Eng, and DBS Vickers.

Mapletree Industrial Trust is an industrial REIT with a portfolio of 56 properties in the US, 83 in Singapore, and one in Japan.

The REIT's assets under management (AUM) stood at S$8.9 billion as of 30 September 2024.

Its revenue rose 3.5% year on year to S$356.7 million, while net property income (NPI) increased by 2.9% year on year to S$267 million.

The REIT's distribution per unit (DPU) inched up 1.3% year on year to S$0.068.

MIT's trailing 12-month DPU stood at S$0.1352, giving its units a trailing distribution yield of 6%.

The REIT has a high portfolio occupancy of 92.9% with a long weighted average lease expiry (WALE) of 4.4 years by gross rental income (GRI).

A positive rental reversion of 10.7% across its renewal leases suggests strong demand for properties within its portfolio.

Data centre demand is projected to grow 9.3% annually from 2023 to 2033, making the REIT's recent acquisition of a freehold property with redevelopment potential into a new data centre a strategic move.

MIT looks well-positioned to deliver higher DPU in the future.

Paragon REIT is a great option for investors looking to diversify their portfolio. It owns a portfolio of five assets in Singapore and Australia, including Paragon, Clementi Mall, and Rail Mall in Singapore, and Westfield Marion Shopping Centre and Figtree Grove Shopping Centre in Australia.

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Paragon REIT reported a mixed set of earnings for 1H 2024, with gross revenue increasing by 3% year on year to S$147.4 million. This growth was largely driven by its strong portfolio occupancy rate of 97.9% for 3Q 2024.

The REIT's net property income (NPI) improved by 4.5% year on year to S$110.8 million, despite a 4.1% lower distribution per unit (DPU) at S$0.0232 due to management's decision to receive fees in cash. This decision helped avoid dilution to unitholders.

Paragon REIT's trailing 12-month DPU stood at S$0.0492, giving its units a trailing distribution yield of 5.7%. This yield is relatively attractive compared to other investment options.

The REIT saw its portfolio rental reversion rate improve to 19.1% for 1H 2024 from just 6.9% a year ago, a testament to the strong demand for its properties. This increase in rental reversion rate is a positive sign for investors.

When investing in Singapore REITs, you have several options to choose from.

There are 4 REIT ETFs listed on the Mainboard of the Singapore Exchange.

Each one offers a unique investment proposition, catering to different investment goals and risk tolerance.

You can consider the diverse range of REIT ETFs available, each with its own strengths and weaknesses.

According to REITAS, these 4 REIT ETFs are listed on the Mainboard of the Singapore Exchange.

You can buy Singapore REIT ETFs through your stockbroker, just like any other stock. The stockbrokers that offer all Singapore REIT ETFs include Phillip Securities, Maybank Kim Eng, DBS Vickers, UOB Kay Hian, OCBC Securities, FSMOne, CIMB Securities, and Tiger Brokers.

REIT ETFs are listed on the Mainboard of the Singapore Exchange, according to REITAS, and there are 4 REIT ETFs to choose from. Each one offers a different investment proposition.

To buy Singapore REIT ETFs, you'll need to know their stock codes, which are CLR for Lion-Phillip S-REIT ETF, CFA for NikkoAM-Straits Trading Asia Ex-Japan REIT ETF, BYI for Phillip SGX APAC Dividend Leaders REIT ETF, and SRT for CSOP iEdge S-REIT Leaders Index ETF.

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Here's a summary of the stock codes and their corresponding stockbrokers:

The lot size for buying these ETFs varies, with 100 units per lot for CLR and BYI, and 10 units per lot for CFA and SRT.

If you're looking for a Singapore-listed REIT focused ETF, Lion-Phillip S-REIT ETF is a great option. It tracks the Morningstar Singapore REIT Yield Focus Index, which screens for high-yielding REITs with superior quality and financial health.

The Lion-Phillip S-REIT ETF has a stock code of CLR and a dividend yield of 5.6% as of January 24. Its expense ratio is 0.6% per annum, which is relatively low.

One of the key advantages of the Lion-Phillip S-REIT ETF is its strong performance in 2023, with a return of 0.56%. Its tracking error is 0.5%, which means it closely follows the underlying index.

The ETF has a large fund size of SGD 291.4 million as of January 24, indicating its popularity among investors. It also has a semi-annual dividend frequency, which can provide regular income for investors.

Here are the top 10 holdings in the Lion-Phillip S-REIT ETF, along with their weightage:

Overall, the Lion-Phillip S-REIT ETF offers a convenient way to invest in Singapore's REIT market, with a strong track record and a diversified portfolio of high-yielding REITs.